Reborn with Consumption System-Chapter 616 - 271: Making an Appearance (Part 4)
So, my plan is as follows—
A fund subsidiary of Zhongmei will initiate a single-investor trust scheme. We'll find any trust company, package Jinguang's project into it, and negotiate the channel fee down to 0.2%.
We bypass the securities firms, saving on underwriting costs.
Then, I'll bring in the newly-established Magic Capital Reinsurance Company to provide credit enhancement for the project, and I'm confident I can control the guarantee fee at around 4%.
Afterwards, I will finalize things with SAIC, getting their Securities Finance department to forgo purchasing government bonds and instead fully absorb the trust at an annual interest rate of 5%.
The project's custodian will be Magic Capital Bank, with a management fee of 1.3%.
The legal side will go to Fangda, for a fee of 5 million.
Any of the Big Four accounting firms will do, also for a fee of 5 million.
We'll still use Magic Capital Lixin as the appraisal agency, for a fee of 27.5 million.
That's a total of 11%, leaving 0.5% for flexibility.
In the end, a subsidiary of SAIC will launch a special corporate bond plan for a total of 10 billion to your bank, raising funds through wealth management products, issuing 2.5 billion as the senior tranche to customers, and your bank, through PMC, will invest 7.5 billion in the junior tranche—as long as you understand my meaning, the specifics can be adjusted for your bank's convenience.
As long as the final interest rate for SAIC is controlled below 4.2%, we're okay.
In this way, your bank will gain at least a 5.5% return on an actual investment of 7.5 billion, and provide 2.5 billion in high-security wealth management products to ordinary customers.
President Qi will get 7.5 billion in trust funds and start construction on the property as scheduled.
SAIC, by going through this process, will earn a yield spread of 0.8% on the 7.5 billion, as well as a 2.5 billion corporate bond with a moderate interest rate. I'll help them arrange for all of it to be placed, aiming for an annual interest of at least 7%, which is another extra profit margin.
The reinsurance company will get a key project, expand its influence, and continue its surge towards the top ten in the industry.
The trust company doesn't need to do anything but will pocket 15 million.
Everyone's happy; no one loses.
"How about it, both of you? Are you satisfied with my plan?"
President Qi and Jin Minghui exchanged glances, their eyes brimming with delighted surprise.
"Satisfied! More than satisfied!"
"I'm definitely fine on my end, but... are you sure you can achieve all this?" Jin Minghui suddenly felt a wave of apprehension, the kind that fixates on potential gains and losses.
The plan was too perfect; it struck precisely at the heart of his needs.
He hadn't mentioned a single word about taking assets off the balance sheet, yet the core of the project was entirely about off-balance-sheet activities.
If this isn't damn genius, what is?!
However, precisely because the plan was so perfect, Jin Minghui harbored immense concerns.
A plan is one thing; thinking it up isn't easy—alright, thinking it up is very difficult—but the hardest part is getting SAIC and the reinsurance company to cooperate.
This was definitely not as simple as just talking about it.
However, Han Lie made no show of modesty, displaying nearly absolute confidence.
"If I dare to propose it, I naturally have the confidence to execute it. The total project cost of 11.5% is already written into the contract. Gentlemen, please rest assured."
Truth be told, that was a slick move.
Jin Minghui's perfectly maintained composure completely shattered. He excitedly snatched up his phone and ducked into the small restroom inside.
When he reemerged, he was smiling brightly. From afar, he extended both hands towards Han Lie.
"Mr. Han, a pleasure doing business with you!"
Han Lie also smiled. I don't know if you're pleased or not, but I'm certainly making a killing on this brokerage fee. 110 million might not be certain, but 75 million is a sure thing. Did that even take an hour? Ha, before the Lunar New Year, I'll get my appearance score up to 89 points. Perfect! And I've done Old Jin a huge favor. From now on in the Magic Capital financial circle, with connections to Old Jin, Old Huang, and Brother Tang, wouldn't I practically have free rein?! Oh, right, can't forget Panzi. The favor from the reinsurance company should go to him. If he can't negotiate the fee down to 4%, he'll have to compensate me with another watch...
Han Lie rapidly ran through the calculations in his head, hardly able to suppress a laugh.
Just as he walked out the door, he saw Tang Xintian and bestowed upon her a big, beaming smile.
Tangtang was puzzled. Suddenly being so friendly towards me… Does your new plan require my help?
She approached quickly, drink in hand, her heart full of anticipation.
I'm not afraid of hard work! Whatever project it is, just throw it my way!
This is what playing finance at a certain level looks like…
If everyone finds it too dry or the censors don't allow it to be written, then I'll just keep quiet in the future.
